As the prices of cryptocurrencies continue to rise, so does the number of people looking to get in on the action. Those looking to get into the ETH market have many options to choose from, but few compare to the top DEX platform, SmartChain, which has earned a reputation for being very user friendly. In fact, they’ve built a reputation for being damn friendly, and when you have a reputation to protect, you do what it takes to protect it.
Decentralized crypto exchanges are a dime-a-dozen now, but how many can be used as a true alternative to centralized exchanges? In the race between centralized exchanges, Binance’s DEX has quickly risen to the top, with its impressive track record, stupendous number of users, and admirable speed.
While most indicators hit new highs in the middle of the quarter as the broader crypto-currency market made a turnaround, activity in many decentralized financial protocols (DeFi) declined.Despite the negative impact of the market downturn and falling prices, the highly competitive hi-fi sector has grown on several fronts, according to the Messari survey for the second quarter of this year.
DEX volume increases
According to a study by the cryptocurrency data and research platform Decentralised Exchange (DEX)
In the second quarter of this year, the meteoric rise in volume continued to $405 billion, 83% more than in the previous quarter.
Since May, when the market peaked, volumes have halved to $203.5 billion, but although volumes fell to $95 billion in June, it is still the third highest month on record.
Messari’s data showed that DEX volume as a percentage of centralized trading (CEX) volume exceeded 10% for the first time since October 2023, and the data continues to show that DEXs are devouring their centralized counterparts over time.
A dynamic competitive landscape
This revision reflects a rather dramatic change in PancakeSwap’s position, as DEX, Binance Smart Chain’s (BSC) rival, briefly overtook Uniswap in volume in April.
PancakeSwap’s market share has fallen sharply since Uniswap took over following the introduction of the V3 protocol, which allows liquidity providers (LPs) to make deals in individual price bands.
In late June, the automated liquidity ledger on the Ethereum blockchain (ETH) reached 54% of weekly volume share, the highest since November 2023, and now accounts for more than 40% of total DEX volume.
The BSC ecosystem has had its biggest downturn since the stock market crash in May, with the total value of the blockchain (TVL) falling more than 50% from its peak in just a few days, although the emergence of Polygon, the protocol that transforms Ethereum into a fully multi-chain system, has also played a significant role in the drop in volume share.
Unlike Ethereum’s TVL, which has many stable coins, the TVL is heavily over-distributed towards the higher end of the risk spectrum, making it extremely sensitive to market fluctuations.
Combined with a series of hacks and exploits on BSC that resulted in significant losses, Blockchain saw a sharp drying up of trading in June, resulting in a 69% drop in PancakeSwap volume.
According to the report, the activity provided excellent insight into the emerging liquidity wars between blockchains.
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Published in : Analysis, DeFi
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